Gold prices power to 6-week high, back above $1,500.00

2020 is expected to be another year of great uncertainty and turmoil. But the question is which asset will be victorious when the dust settles in the global trade war, Brexit, recession threats, negative bond yields. It is certainly a confrontation of global proportions.

Certainly, gold and silver prices are solidly higher and are at a maximum of six weeks in Tuesday’s midday trade. Gold prices fell above the psychologically important level of $ 1,500.00. You could say that for the holidays and at the end of the year, safe metal bulls have much more confidence as the technical positions for gold and silver have become positive. It is important to note that other markets for raw commodities are being encouraged, including the markets for grains, soft products, and crude oil. This suggests that traders and investors expect better global economic growth in 2020.

That would clearly mean a greater demand for raw materials, including precious metals.

Gold before 2020

Gold traders took note today of a comment by Byron Wien of Blackstone on CNBC: “Look at the gold in 2020”. Others also think that the yellow metal is waiting for good times, judging by its recovery at the end of the year despite record gains in US stocks.

It is appropriate to indicate that stock indexes in Asia and Europe increased slightly in a quieter trade overnight. The United States stock indices were a bit low at noon, but still close to their record highs set on Monday. Markets are closed Wednesday for Christmas holidays and many, including the US stock markets, closed early today.

Likewise, it could be said that the geopolitical front has been calmer for many weeks, including the commercial tensions between the United States and China that relaxed in the last two weeks, and that is creating a “risk” business environment that is driving Global actions

Now, the main “external markets” today see the US dollar index slightly higher. Meanwhile, Nymex oil prices rose and traded around $ 61.00 per barrel after reaching a maximum of several months last week.

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Source: Jim Wyckoff | Kitco